The Supreme Court struck down President Trump's IEEPA tariffs in a 6-3 ruling this week, but the reprieve for markets was short-lived. Hours after the decision, Trump imposed new 15% tariffs under Section 122 of the Trade Act of 1974. Bitcoin initially jumped on the court's move, then reversed sharply as the new levies were announced.
Supreme Court's 6-3 decision
The Court's conservative majority sided with challengers who argued the president overstepped his authority under the International Emergency Economic Powers Act. The ruling effectively nullified the earlier tariff regime that had been in place since last year. The decision was narrow, with the six justices in the majority writing that IEEPA does not grant the president blanket authority to impose broad tariffs without congressional approval.
Trump's Section 122 response
Trump did not wait long. He invoked Section 122 of the Trade Act, a rarely used provision that allows temporary tariffs of up to 15% for 150 days without a formal emergency declaration. The new 15% levy covers a similar range of imports as the struck-down IEEPA tariffs. The White House framed the move as a necessary step to protect domestic industries, though legal challenges are expected.
Bitcoin's whipsaw
Bitcoin surged on the Supreme Court news, with traders interpreting the ruling as a de-escalation in trade tensions. But the rally evaporated once Trump announced the Section 122 tariffs. The cryptocurrency gave back all of its gains within hours, settling near where it started the day. The reversal underscores how sensitive crypto markets remain to trade policy headlines, even as the asset class matures.
The new tariffs take effect immediately, and market participants are now assessing the impact on risk assets. No further court challenges have been filed yet, but legal observers expect a swift response from trade groups.
